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Korean internet provider sues Netflix over ‘Squid Game’ traffic surge – National

South Korean Web service supplier SK Broadband has sued Netflix to pay for prices from elevated community site visitors and upkeep work due to a surge of viewers to the U.S. agency’s content material, an SK spokesperson stated on Friday.

The transfer comes after a Seoul court docket stated Netflix ought to “moderately” give one thing in return to the web service supplier for community utilization, and a number of South Korean lawmakers have spoken out in opposition to content material suppliers who don’t pay for community utilization regardless of producing explosive site visitors.

Netflix stated it should evaluate SK Broadband’s declare, and search dialogue and discover methods within the meantime to work with SK Broadband to make sure prospects aren’t affected.

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The recognition of the hit sequence Squid Sport and different choices have underscored Netflix’s standing because the nation’s second-largest information site visitors generator after Google’s YouTube, however the two are the one ones to not pay community utilization charges, which different content material suppliers equivalent to Amazon, Apple and Fb are paying, SK stated.

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Netflix’s information site visitors dealt with by SK jumped 24 instances from Could 2018 to 1.2 trillion bits of knowledge processed per second as of September, SK stated, driving on the success of a number of Netflix productions from Korea together with Squid Sport and D.P.

SK Broadband stated it lodged a lawsuit in opposition to Netflix for it to pay for utilizing SK’s networks since Netflix started utilizing SK’s devoted line beginning 2018 to ship more and more bigger quantities of data-heavy, high-definition video content material to viewers in Korea from servers in Japan and Hong Kong.

Final 12 months, Netflix had introduced its personal lawsuit on whether or not it had any obligation to pay SK for community utilization, arguing Netflix’s responsibility ends with creating content material and leaving it accessible. It stated SK’s bills have been incurred whereas fulfilling its contractual obligations to Web customers, and supply within the Web world is “freed from cost as a precept,” in accordance with court docket paperwork.

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However the Seoul Central District Court docket dominated in opposition to Netflix in June, saying that SK is seen as offering “a service supplied at a price” and it’s “affordable” for Netflix to be “obligated to offer one thing in return for the service.”

SK estimated the community utilization charge Netflix wanted to pay was about 27.2 billion received (US$22.9 million) in 2020 alone, the court docket doc stated.

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Netflix has appealed in opposition to the ruling, court docket data confirmed, with contemporary proceedings to begin in late December.

Netflix stated in a press release on Wednesday that it contributed to the creation of about 16,000 jobs in South Korea stemming from about 770 billion received in investments, in addition to an financial impact of about 5.6 trillion received.

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Ruling social gathering lawmaker Kim Sang-hee stated on Wednesday that out of South Korea’s high 10 information site visitors turbines, 78.5 per cent of the site visitors got here from international content material suppliers, up from 73.1 per cent a 12 months earlier, with “Google-YouTube and Netflix that account for almost all turning a blind eye to community utilization charges.”

In the US, Netflix has been paying a charge to broadband supplier Comcast Corp for greater than seven years for sooner streaming speeds.




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